Property company backed by pair in FBI probe owes fines to South Daytona

Published: Tuesday, February 12, 2013 at 4:34 p.m.

Last Modified: Tuesday, February 12, 2013 at 6:45 p.m.

SOUTH DAYTONA -- The investment group that purchased the majority of the condos at a South Daytona building at the center of a bribery scandal still owes the city almost $28,000 in recycling fees and penalties that have been mounting on the property for years, city records show.

At least two of the members of that initial investment group — known as 3131 South Ridgewood LLC — are also the focus of a FBI mortgage fraud investigation, federal officials have confirmed.

Real estate broker and investor Ramara Garrett and her boyfriend Jim Sotolongo were behind the purchase of many of the units at the River Club Condominiums, 3131 S. Ridgewood Ave., in May 2009, under the corporation known as 3131 South Ridgewood LLC. The corporation is now inactive, state corporation records show, and Ramara Garrett's name has not appeared on any corporate records since 2009.

South Daytona city officials confirmed 3131 South Ridgewood LLC still owes the city for multifamily unit recycling fees and penalties that have been accruing on that unpaid balance. The city has placed a lien on the property.

While the lien of $27,823 did not originate with 3131 South Ridgewood LLC, but with former property owner Avinash Gupta, the corporation is still responsible for paying it off, said South Daytona Finance Director Chris Campbell.

Campbell said the corporation has been paying the recycling fees ever since it took over the River Club, but the debt incurred by Gupta still must be paid off.

Because 3131 South Ridgewood LLC paid for the condo units in cash — $1.25 million — the lien did not have to be satisfied before the purchase went through. But the lien was transferred over to the new owners once they took over the property, Campbell said.

Aside from the financial issues facing the River Club, the property has been shadowed by controversy since 2010. That was the year two former South Daytona city officials were caught up in a bribery scandal linked to the condominium. At the time there were $241,000 in code liens lodged against the property. When 3131 South Ridgewood LLC purchased the property in May 2009, Garrett and Sotolongo met with South Daytona City Manager Joe Yarbrough and asked what the city's policies were regarding code lien reductions.

A year later, an informant working for the FBI posed as an interested investor in the condominium. That informant, identified in federal court as Stuart Buchanan, a planner with Brevard County government, paid former Mayor Ron Clifton and former Special Magistrate Jerome Mitchell bribes of $7,500 and $5,000, respectively, to have the code liens reduced.

Both men went to federal prison for accepting the bribes.

Now, the River Club is linked to Sotolongo and Garrett, whose mother still lives in a unit there.

Stephanie Musselwhite, the title agent who is under investigation by the FBI along with Garrett and Sotolongo, has been living at the River Club Condominium, as well.

Neither Garrett, Sotolongo nor Musselwhite have returned calls for comment concerning the mortgage fraud issue. Miami attorney Richard Klugh said he represents Musselwhite but did not return a phone message.

On Jan. 31, FBI agents raided a business formerly owned by Garrett called Waverly Media LLC in Port Orange, 4188 Dairy Court, Suite D. The company is involved in bus bench advertising. FBI investigators took several boxes of documents from the business, housed in the storage warehouse. Agent Robert Robichaud confirmed the raid is tied to the mortgage fraud investigation of Garrett, Sotolongo and Musselwhite.

Florida corporate records show Garrett was the managing member of Waverly Media LLC from April 2008 to December 2011 when she was replaced in that position by James Brown, who lives in Ponce Inlet. Brown did not return messages left at his home last week and would not come to the front door of his residence. Garrett remains the managing member of Florida Media Partners LLC, which shares an address with Waverly Media, state records show.

Greg Gary, the owner of Grace Title in Altamonte Springs, the company where Musselwhite worked as a title agent, said last week that he had no clue Musselwhite — a subcontractor with Grace — was under investigation. Gary said that when he learned of the raid, he immediately met with his underwriters and attorneys to discuss the issue.

He said Musselwhite warned him he would be reading about her in the newspaper and said the entire situation was nothing more than a "witch hunt."

Gary said he would not allow Musselwhite to work for his company, as of Feb. 4. He also said he would be putting out an alert telling his employees to no longer accept any real estate transactions from Garrett, Sotolongo or Musselwhite.

"We want to separate ourselves from this as quickly as possible," Gary said.

<p>SOUTH DAYTONA -- The investment group that purchased the majority of the condos at a South Daytona building at the center of a bribery scandal still owes the city almost $28,000 in recycling fees and penalties that have been mounting on the property for years, city records show. </p><p>At least two of the members of that initial investment group &mdash; known as 3131 South Ridgewood LLC &mdash; are also the focus of a FBI mortgage fraud investigation, federal officials have confirmed. </p><p>Real estate broker and investor Ramara Garrett and her boyfriend Jim Sotolongo were behind the purchase of many of the units at the River Club Condominiums, 3131 S. Ridgewood Ave., in May 2009, under the corporation known as 3131 South Ridgewood LLC. The corporation is now inactive, state corporation records show, and Ramara Garrett's name has not appeared on any corporate records since 2009. </p><p>South Daytona city officials confirmed 3131 South Ridgewood LLC still owes the city for multifamily unit recycling fees and penalties that have been accruing on that unpaid balance. The city has placed a lien on the property. </p><p>While the lien of $27,823 did not originate with 3131 South Ridgewood LLC, but with former property owner Avinash Gupta, the corporation is still responsible for paying it off, said South Daytona Finance Director Chris Campbell. </p><p>Campbell said the corporation has been paying the recycling fees ever since it took over the River Club, but the debt incurred by Gupta still must be paid off. </p><p>Because 3131 South Ridgewood LLC paid for the condo units in cash &mdash; $1.25 million &mdash; the lien did not have to be satisfied before the purchase went through. But the lien was transferred over to the new owners once they took over the property, Campbell said. </p><p>Aside from the financial issues facing the River Club, the property has been shadowed by controversy since 2010. That was the year two former South Daytona city officials were caught up in a bribery scandal linked to the condominium. At the time there were $241,000 in code liens lodged against the property. When 3131 South Ridgewood LLC purchased the property in May 2009, Garrett and Sotolongo met with South Daytona City Manager Joe Yarbrough and asked what the city's policies were regarding code lien reductions. </p><p>A year later, an informant working for the FBI posed as an interested investor in the condominium. That informant, identified in federal court as Stuart Buchanan, a planner with Brevard County government, paid former Mayor Ron Clifton and former Special Magistrate Jerome Mitchell bribes of $7,500 and $5,000, respectively, to have the code liens reduced. </p><p>Both men went to federal prison for accepting the bribes. </p><p>Now, the River Club is linked to Sotolongo and Garrett, whose mother still lives in a unit there. </p><p>Stephanie Musselwhite, the title agent who is under investigation by the FBI along with Garrett and Sotolongo, has been living at the River Club Condominium, as well. </p><p>Neither Garrett, Sotolongo nor Musselwhite have returned calls for comment concerning the mortgage fraud issue. Miami attorney Richard Klugh said he represents Musselwhite but did not return a phone message. </p><p>On Jan. 31, FBI agents raided a business formerly owned by Garrett called Waverly Media LLC in Port Orange, 4188 Dairy Court, Suite D. The company is involved in bus bench advertising. FBI investigators took several boxes of documents from the business, housed in the storage warehouse. Agent Robert Robichaud confirmed the raid is tied to the mortgage fraud investigation of Garrett, Sotolongo and Musselwhite. </p><p>Florida corporate records show Garrett was the managing member of Waverly Media LLC from April 2008 to December 2011 when she was replaced in that position by James Brown, who lives in Ponce Inlet. Brown did not return messages left at his home last week and would not come to the front door of his residence. Garrett remains the managing member of Florida Media Partners LLC, which shares an address with Waverly Media, state records show.</p><p>Greg Gary, the owner of Grace Title in Altamonte Springs, the company where Musselwhite worked as a title agent, said last week that he had no clue Musselwhite &mdash; a subcontractor with Grace &mdash; was under investigation. Gary said that when he learned of the raid, he immediately met with his underwriters and attorneys to discuss the issue. </p><p>He said Musselwhite warned him he would be reading about her in the newspaper and said the entire situation was nothing more than a "witch hunt." </p><p>Gary said he would not allow Musselwhite to work for his company, as of Feb. 4. He also said he would be putting out an alert telling his employees to no longer accept any real estate transactions from Garrett, Sotolongo or Musselwhite. </p><p>"We want to separate ourselves from this as quickly as possible," Gary said.</p>